Image source : https://bunkerchain.io/

Background and Necessity in Maritime Applications

In recent years, the maritime industry has been undergoing a digital transformation, driven by the need for greater efficiency, security, and transparency. One key technology with the potential to enable this monumental shift is blockchain, which provides a decentralized and tamper-proof system for recording transactions. This structure ensures that once information is recorded, it cannot be altered without modifying all subsequent blocks and obtaining consensus from the network.

By reducing paperwork, streamlining processes, and enhancing trust between stakeholders, blockchain has the key features needed to reshape how maritime operations are conducted. One company looking to capitalize on this synergy is Bunkerchain, a Singapore-based company, that’s leveraging blockchain to optimize various aspects of maritime logistics, particularly in bunker fuel transactions and vessel management.

Bunkerchain employs blockchain technology to automate workflows while maintaining data privacy between counterparties. Its peer-to-peer architecture ensures that documents and messages are encrypted and transferred directly between involved parties, without central intermediaries. This approach allows companies to maintain full control over their data, aligning with security and compliance requirements.

Key offerings on their platform include:

• Marine Vessel Pass (MVP): This digital identity system assigns unique identifiers to ships over 100 gross tonnes, integrated directly with the International Maritime Organization (IMO) database. It facilitates the secure sending, signing, and verification of maritime transactions, consolidating these processes into a single platform with one login. 
  
• Touch and Sail: An electronic Bunker Delivery Note (eBDN) system that digitizes fuel orders. This solution allows for the seamless issuance, checking, and transfer of fuel orders, reducing manual processes and enhancing operational efficiency. 
  
• Vessel Connect: A barge nomination system designed to coordinate and streamline barge loading at terminals. By automating these processes, Vessel Connect aims to improve scheduling and reduce delays in maritime logistics. 

What makes Bunkerchain’s services different from traditional technologies?

Bunkerchain distinguishes itself from traditional bunkering practices by integrating a digital approach with blockchain technology to enhance efficiency, transparency, and security in maritime operations. The key differentiators of this approach include:

• Reducing manual effort and errors: Traditional bunkering often relies on manual documentation, which can be time-consuming and prone to errors. Bunkerchain’s solutions, such as the Marine Vessel Pass (MVP) and Touch & Sail electronic Bunker Delivery Note (eBDN) system, digitize these processes, reducing paperwork and minimizing human error. This also translates to improved compliance: automated compliance reporting ensures adherence to regulations and simplifies audit processes.
  
  
• Enhanced Transparency and Traceability: By utilizing blockchain technology, Bunkerchain ensures that all transactions are securely recorded and immutable, providing a transparent and traceable record of all bunkering activities. This level of transparency is typically lacking in conventional methods
  
  
• Improved Operational Efficiency: Solutions like Vessel Connect streamline the coordination of barge loading at terminals, optimizing scheduling and reducing delays—a significant improvement over traditional, often fragmented, scheduling systems. 

However, adoption of new technology such as blockchain is not without it challenges and is likely to include:

• Adoption Resistance: Transitioning from traditional methods to digital platforms may face resistance from stakeholders accustomed to legacy systems.​
  
  
• Initial Investment: Implementing new technologies may require significant upfront investment in infrastructure and training.
  
  
• Cybersecurity Risks: As with any digital platform, there is an inherent risk of cyber threats, necessitating continuous monitoring and security enhancements. However, Bunkerchain has made significant efforts to mitigate this by achieving ISO/IEC 27001:2013 certification

The Founders

Bunkerchain was co-founded in 2020 by Vance Loh and Leon Ling, who serves as the Chief Executive Officer (CEO), bringing over 20 years of experience in global business management, finance, and technology. Vance Loh is the Executive Director, having started his professional career with one of Singapore’s top ten bunker physical suppliers, where he held roles in operations and business development.

Key Partnerships and Collaborations

Bunkerchain has attracted investments from notable entities, including Digitt Investments and Yunnan Jiu Tian Investment Holdings Group. Bunkerchain has also engaged in significant collaborations to advance digital solutions in the maritime industry:

• ExxonMobil: In Singapore, ExxonMobil completed over 100 digital bunker deliveries using Bunkerchain’s platform, showcasing the practical application and reliability of its digital solutions.
• Maritima and Port Authority of Singapore (MPA): On April 16, 2024, during the ‘Accelerating Digitalisation and Decarbonisation Conference’ at Singapore Maritime Week, MPA signed a Memorandum of Understanding (MoU) with Bunkerchain and S&P Global Market Intelligence. This collaboration aims to use the Port of Singapore as a test bed to trial and pilot the use of digital ship identities in maritime applications, such as digital port clearance and digital bunkering. The initiative seeks to enhance the security, trust, and efficiency of electronic transactions in the maritime sector by deploying digital ship identities alongside electronic signatures, eliminating the need for physical ship stamps and wet ink signatures.
  
  

Maritime & Blockchain: The Bigger Picture

Blockchain technology holds immense promise for transforming maritime operations, offering unprecedented efficiency, transparency, and security. Start-ups such as Bunkerchain have already demonstrated the tangible benefits blockchain can bring to bunker operations, serving as a valuable proof-of-concept. However, this innovative technology is poised to extend far beyond these initial applications.

Significant opportunities exist in critical operational areas such as the issuance and validation of Bills of Lading, dramatically reducing paperwork and processing delays while enhancing fraud prevention. Blockchain could also streamline crewing processes, simplifying identity verification, certification management, and compliance tracking, thereby optimizing crew rotations and improving onboard efficiency.

Moreover, blockchain’s smart contracts have the potential to revolutionize time charter contracting by automating terms, conditions, and payments, thereby reducing disputes and administrative overheads. Real-time visibility and immutable records facilitated by blockchain technology can further enhance trust and collaboration across the maritime supply chain, improving cargo tracking, regulatory compliance, and operational safety.

As the maritime industry continues to evolve, blockchain will likely emerge not only as a supportive tool but as an essential component driving industry-wide innovation and growth. The synergy between blockchain technology and maritime operations is set to redefine the industry, positioning it for a more connected, efficient, and secure future.

Reference

Bunkerchain. (2024, October 9). Home – Bunkerchain. Retrieved from https://bunkerchain.io/ 

Marine Vessel Pass. (n.d.). Payments – Marine Vessel Pass. Retrieved from
https://marinevesselpass.com/features/payments?utm 

Marine Vessel Pass. (n.d.-b). About us – Marine Vessel Pass. Retrieved from https://marinevesselpass.com/about/about-us?utm 

Seatrade Maritime News. (2024). Bunkerchain and S&P Global Intelligence to develop digital vessel identities. Retrieved from https://www.seatrade-maritime.com/bunkering/bunkerchain-and-s-p-global-intelligence-to-develop-digital-vessel-identities?utm 

Manifold Times. (2024). Singapore: ExxonMobil completes 100 digital bunker deliveries with Bunkerchain. Retrieved from https://www.manifoldtimes.com/news/singapore-exxonmobil-completes-100-digital-bunker-deliveries-with-bunkerchain/?utm_source=chatgpt.com 

PitchBook. (2024). Bunkerchain Company Profile. Retrieved from https://pitchbook.com/profiles/company/509742-73?utm 

Contributor : Ariana Tri Asti

Reviewer : Imam Buchari